Management of Mitol Rhoin AG of Kon, Germany, would like to reduce the amount of

Question

Management of Mitol Rhoin AG of Kon, Germany, would like to reduce the amount of hme between when a cuslomer places an order and when the order is shipped For the first quarter of operations duning the current year the following data were reported 0 3 days nspection time Wait time (from order to start of production) 14.0 days Process time Move time Queue time 7 days 1.0 days 50 days Required: 1. Compute the throughput ime days 2. Compute the manufacturing cycle efficiency (MCE) for the quarter (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non-value added activitios? 4 Compute the delivery cycle time days

Explanation / Answer

1) Throughput time

2) Manufacturing Cycle Effeciency (MEC)

MCE= Process time / Throughput time

= 2.7 / 9

= 0.30

3) Throughput time in Non Value added activities

Non value added activities = Queue time + Move time + Inspection time

= 5 + 1 + 0.30

= 6.30

= Non value activities / Throughput time

= 6.30 / 9.0

= 70%

4) Delivery Cycle time

= Wait time + Throughput time

= 14 + 9

= 23 Days

5) New through put

= Old throughput - Queue time

= 9 - 5

= 4 days

MCE = Process time / Throughput time

= 2.7 / 4

= 0.675

Particulars Days Process time 2.7 Inspection Time 0.3 Move time 1.0 Queue time 5.0 Total 9.0

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